Berkshire’s Hidden $8 Billion Earnings Explained & Key Risk

Berkshire is a terrific service and I do not think Buffett's age is a threat given that the businesses are all doing business without Buffett now. Over the long-term there could be some capital allotment difficulties however he likely advised his supervisors well and the goal is not eye-popping efficiency as he recently shared in his letter. But, there is a significant risk when investing.

BRK Letter And Outcomes

My passion is to look for low threat high reward financial investment chances. I apply my accounting skills and investing experience in order to discover interesting investment ideas that offer the possibility to lead me towards my financial goals.
If you are a sophisticated investor trying to find in depth, independent stock analyses and investing ideas, here is my STOCK MARKET RESEARCH PLATFORM (service and sector danger and benefit analysis, my portfolios):.

STOCK EXCHANGE RESEARCH STUDY PLATFORM:.

Are you an investor that is just starting? Sign up for the FREE Stock Exchange Investing Course – a comprehensive guide to investing going over all that matters:.

I am likewise a book author:.
Modern Worth Investing book:.

The below links are from 3rd parties or channel sponsors where I get a fee from:.

SeekingAlpha Deal:.

I frequently get inquired about brokers, here is a low cost broker, a global one that enables you to buy on international markets, and also provides complicated solutions like alternatives for when your investing abilities grow. In the meantime, it is one of the very best options I have found for international financiers, likewise based on your remarks and inputs:.

Berkshire's Hidden $8 Billion Earnings Explained & Key Risk

Wealth Builders Club
Wealth Builders Club Secrets Revealed – Click Here to Discover the #1 Investment Resource!

You May Also Like

About the Author: Richard Money

23 Comments

  1. I don’t doubt that it will remain a very profitable business BUT the market simply isn’t purely rational. When the man dies, the cultural capital that is has is going to be severely damaged. The price WILL go WAY DOWN!!!

    1. I would guess the price will rise as the uncertaintitly of WB’s age will be removed. Hopefully the culture WB has put into BRK will mean it contiunes to thrive. For example Standard Oil made people rich for 100 years and nobody knows or cares who the second chairman was after Rockfellow’s retired.

    2. I’m not super sure it will. Apart from Apple, he hasnt really properly handled the portifolio very well the last few years. Hes 90. Time to switch was last decade I think.

    3. If the “new buffets” in Berkshire are those who jumped In and out from Verizon and TSMC, not sure the future will be as bright as with Buffet around…

    4. Such emotional moves in the market are extremely temporary though. I assume buffet and co have done serious succession planning considering they have a trillion dollar business with a 100 year old man at the head who any day now is going to shut off and not turn back on. I think it will would be bought right up after the drop. The real danger is if the succession planning puts someone inadequate in his place who just destroys the business itself.

  2. 6:23 I don’t see a world where BRK hits $384 billion market cap, you don’t take into account the $167bn usd on the balance sheet so at a minimum $551bn worst case. Also, comparing 2019 earnings to 2023 is difficult because we’ve had at least 20% of inflation in 4 years. Otherwise good video! I hope I don’t sound like a hater because I like the channel, I’m just giving my thoughts

  3. Is this analysis correct? P/E for privately owned BH businesses is around 12. Because if you would from market cap (885B) remove cash (165B) and portfolio value (355B) and divide that with operating earnings excluding dividends (around 5B) and excluding Earnings of OXY KHC DVA (2B) – 30B- you get PE of around 12.

    1. Thanks for the video. I am not sure how BRK gets to a market cap of $384 billion with $167 billion in cash. I think Uncle Warren or Cousin Greg will be buying stock hand over fist. I think you have done several videos on the Inelastic Market Hypothesis.

  4. HI Sven, a question on the accounting side : berkshire reports operating earnings (which is different from net income / loss because of interest / taxes etc…) but you are adding to Berkshire’s operating earnings NET earings of the Berkshire investments; in other words your sum is not like for like it seems to me . Perhaps you should start from Berkhiser net earngins, add-back the market to market valuations of Berkshire investment and then add what you call Berkshire hidden earngin. Bottom line = it seems to me you are over-estimating Berkshire earning power

  5. People need to stop looking at PE ratio of conglomerates like BH that has underlying public stock holdings. Because it makes no sense. The accounting rule says you need to report unrealized gain/loss from stock investments in the report. In that case, their PE ratio could be negative because they are sitting on unrealized losses (as it happened in 2022). Instead, Warren Buffett always says to look at operating income. I only look at BH’s book value and P/FCF ratio, PE ratio is irrelevant.

  6. From my observation and historical market pattern, there might be a bit of turbulence in the market coming up, but here’s the deal: Trying to guess what’s going to happen next is less important than spreading your bets when trading and thinking long term. It’s not about guessing the market’s next move; it’s about playing it smart and steady…managed to grow a nest egg of around 100k to a decent 732k in the space of a few months… I’m especially grateful to Linda Wilburn, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

    1. I appreciate the professionalism and dedication of the team behind Linda’s trade signal service.

    2. Investing has proven to be an incredibly beneficial decision. My cryptocurrency profits continue to play a substantial role in growing my overall wealth, reducing my reliance on my salary.

    3. Linda Wilburn strategy has normalized winning trades for me and it’s a huge milestone for me looking back to how it all started.

Leave a Reply

Your email address will not be published. Required fields are marked *